BECOME INCOME TAX FILER | WHY & HOW TO BECOME TAX FILER |YHA

In every country, tax collection is one of the major source of revenue collection to run and manage resources smoothly. Without tax collection a country cannot survive or / and grow for a longtime. In order to get tax from the citizens of any country or Companies operating in the jurisdiction of the country, they (citizens and companies) must have to file their tax returns and pay taxes accordingly.

Pakistan is the country where tax collection is only the main source for revenue collection to run the country. For this FBR is the authorized department to collect the revenue. Under the Income Tax Ordinance 2001, as per Section 114 (1) of the Income Tax Ordinance 2001, the law bound some persons to File Income Tax Return Annually.

HOW TO BECOME A TAX FILER | ACTIVE FILER

Tax Filer Status or Active Status (of Individual or AOP or Company or NGO) is the status on FBR portal (FBR site) starts to show.

In order to become tax filer you just need to make NTN and submit Income Tax Return on time, normally 30^th Sep Annually for Individual and AOPs, and 31^st December for Companies and NGOs if the FBR do not extend the due date.

Here is the simple guideline to make NTN and file Income TaxReturn.

Now the cases come if the person file its Tax Return after due date then what will happen, how he will become Filer, when his filer status will become active. There are many questions like this. So you not need to worry. Here are their solutions in this video. You can get all the solutions of them.

If person are not able to file his Income Tax Return in due date or file his Tax Return after due date then he must have to pay ATL Surcharge (a penalty imposed to include a person in Active Tax Payer List of FBR).

ATL SURCHARGE AMOUNT

Here is the breakdown of the ATL Surcharge to be paid as per category of the persons.

Individual Rs. 1,000

AOPs/ Partnership Firms Rs. 10,000

Companies / NGOs Rs. 20,000

After paying the ATL Surcharge and submitting the relevant year’s income tax return, FBR system will update the Filer Status within 24 hours.

HOW TO CHECK TAX FILER STATUS

This status can be verified or checked by online verification on FBR Portal or by sending ATL CNIC # to 9966 through SMS of your phone. E.g. ATL 35201-49999999999-9

WHY TO BECOME TAX FILER | BENEFITS OF TAX FILER

Government gives privileges by reducing tax up to 100% to those persons who file their Income Tax Returns timely as compare to those who either do not file their tax returns or file but late. Further, those who do not file their tax returns timely , government also impose them penalty with different range under section 182 of the Income Tax Ordinance 2001.

Lower rates of tax deduction at source by banks on both profits and cash withdrawals
Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles
Lower rate of tax on buying and selling of property
Lower withholding tax rate on capital gains on sale of securities
Charges for tax on dividend will be lower
Lower rate of withholding tax on prize bond winnings
Allows you to claim back overpaid tax that has been withheld